2016 -- H 7746

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LC004290

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND

COMPUTATION

     Introduced By: Representatives Costantino, Marshall, and Lima

     Date Introduced: February 25, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes –

Liability and Computation" is hereby amended by adding thereto the following section:

      44-18-18.2. Concurrent sales tax holiday with the Commonwealth of Massachusetts.

-- (a) Notwithstanding any general or public law to the contrary, in the event the Commonwealth

of Massachusetts institutes a sales tax holiday during the calendar year 2016, then, for the same

day or days, an excise tax shall not be imposed upon nonbusiness sales at retail of tangible

personal property. For purposes of this section, tangible personal property shall not include

telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboats,

meals or a single item the price of which is in excess of two thousand five hundred dollars

($2,500).

     (b) Notwithstanding any general or public law to the contrary, in the event the

Commonwealth of Massachusetts institutes a sales tax holiday during the calendar year 2016,

then, for the same day or days, a vendor shall not add to the sales price, or collect from a

nonbusiness purchaser, an excise upon sales at retail of tangible personal property. The director

of the department of revenue ("the director") shall not require a vendor to collect and pay excise

upon sales at retail of tangible personal property purchased on any dates concurrent with a sales

tax holiday in the Commonwealth of Massachusetts. An excise erroneously or improperly

collected during any date concurrent with a sales tax holiday in the Commonwealth of

Massachusetts, shall be remitted to the department of revenue.

     This section shall not apply to the sale of telecommunications, tobacco products, gas,

steam, oil, electricity, motor vehicles, motorboats, meals or a single item the price of which is in

excess of two thousand five hundred dollars ($2,500).

     (c) Reporting requirements imposed upon vendors of tangible personal property, by law

or by regulation, including, but not limited to, the requirements for filing returns required

pursuant to the general laws, shall remain in effect for sales for the dates concurrent with a sales

tax holiday in the Commonwealth of Massachusetts.

     (d) On or before December 31, 2016, the director of the department of revenue shall

certify to the comptroller the amount of sales tax forgone, as well as new revenue raised from

personal and corporate income taxes and other sources pursuant to this section. The director shall

file a report with the house and senate finance committees detailing the distribution of revenues

which would have been deposited in each fund without this section.

     (e) Upon imposition of a sales tax holiday for dates certain in the Commonwealth of

Massachusetts, the director shall issue instructions or forms, or promulgate rules or regulations, as

necessary for the implementation of this section.

     (f) Eligible sales at retail of tangible personal property under subsections (a) and (b) of

this section are restricted to those transactions occurring on the specific days concurrent with a

sales tax holiday in the Commonwealth of Massachusetts. Transfer of possession of or payment

in full for the property shall occur on one of those days, and prior sales or layaway sales shall be

ineligible.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TAXATION - SALES AND USE TAXES - LIABILITY AND

COMPUTATION

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     This act would create a Rhode Island sales tax holiday concurrent with a sales tax holiday

in the Commonwealth of Massachusetts, and no excise or sales taxes would be collected on

nonbusiness sales of tangible personal property, with the exception of sales of

telecommunications, tobacco products, gas, steam, oil, electricity, motor vehicles, motorboats,

meals or a single item the price of which is in excess of two thousand five hundred dollars

($2,500).

     This act would take effect upon passage.

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LC004290

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